Purgatory
So this was in purgatory. But the people, at least the guys in the truck and the accident guy, committed their crimes already in purgatory. So why were they there to begin with? And how did Danny get there?
shareThe guy who hit Sadie was just some passerby. Few seconds before Raymond hit her, you could see her demon about to kill her. The demon's used Raymond to kill Sadie at the abandon hospital then let him go after.
The guys in the truck were just getting revenge for the death of one of the guy's daughter. It is when the chubby fellow killed the girl that's when they spawned demons.
Danny only tried to save his sister and upset the demons in the process.